{"id":19710,"date":"2019-10-16T08:28:12","date_gmt":"2019-10-16T07:28:12","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=19710"},"modified":"2019-10-16T09:19:31","modified_gmt":"2019-10-16T08:19:31","slug":"small-uk-businesses-demand-action-to-improve-broadband","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2019\/10\/small-uk-businesses-demand-action-to-improve-broadband.html","title":{"rendered":"Small UK Businesses Demand Action to Improve Broadband"},"content":{"rendered":"

A new report from the Federation of Small Businesses<\/a> (FSB) has demanded action from the UK Government after they surveyed 1,136 small businesses. The results found that 30% of such firms still receive ISP download speeds of less than 10Mbps (rising to 39% in rural areas) and nearly half struggle with “unreliable mobile signals.<\/em>“<\/p>\n

The report – ‘Lost Connectivity<\/strong><\/a>‘ (PDF) – appears to be almost oddly focused upon the forthcoming broadband centric Universal Service Obligation<\/strong><\/a> (USO), which from 20th March 2020<\/strong> will set a minimum required download speed of at least 10Mbps (1Mbps upload); imposing a legally-binding responsibility on KCOM<\/a> in Hull and BT<\/a> – in the rest of the UK – to deliver it in areas where such speeds are not possible.<\/p>\n

NOTE:<\/strong> At present Ofcom<\/a> says 578,000 premises<\/a> cannot receive 10Mbps+, but most of the USO will be delivered via 4G<\/a> based Mobile Broadband and only a small portion (c.40K to 50k) will be tackled via fixed line “fibre<\/em>” FTTC<\/a> \/ FTTP<\/a> upgrades. Meanwhile BT<\/a> believes that c.100,000 may be too expensive for the USO to upgrade.<\/div>\n

However we’d normally expect such studies to be focusing upon “superfast broadband<\/em>” (30Mbps+) coverage or the Government’s recent talk of universal “full fibre<\/em>” or “gigabit-capable<\/em>” connections, which might be arguably of more interest to a lot of businesses. On the other hand it’s worth remembering that demands vary by business (e.g. a fish and chip shop can live with 10Mbps but a graphic design firm is going to need a lot more).<\/p>\n

Otherwise almost half (47%) of small businesses also said the speeds they receive are often lower than what was promised by their ISP when they first signed up. Indeed 70% of those that currently receive download speeds of less than 10Mbps report that this is lower than the speeds they were promised.<\/p>\n

On the other hand the survey also found that over half (52%) of small businesses plan to upgrade to ultrafast “full fibre<\/em>” (FTTP<\/a>) connectivity when it becomes available in their area. Likewise 72% of those that currently receive download speeds of less than 10Mbps plan to upgrade to full fibre when it becomes available.<\/p>\n

The report also explores mobile connectivity, with its data showing almost half (45%) of small businesses cannot get a “good connection<\/em>” on their mobile phones (rising to 57% in rural areas of the UK).<\/p>\n

Summary of FSB Broadband Survey Results<\/strong><\/span><\/p>\n

Download speeds:<\/strong>
\n\u2022 30 per cent of small businesses receive download speeds of less than 10 megabits per second (Mbps).<\/p>\n

\u2022 39 per cent of small businesses in rural areas receive download speeds of less than 10 Mbps.<\/p>\n

\u2022 One third (33%) of small businesses consider their broadband speeds to be insufficient for their current needs, rising to 40 per cent when considering their future needs.<\/p>\n

\u2022 39 per cent of small businesses in rural areas consider their broadband speeds to be insufficient for their current needs, rising to 46 per cent when considering their future needs.<\/p>\n

\u2022 Over two thirds (68%) of small businesses that currently receive download speeds of less than 10 Mbps consider their broadband speeds to be insufficient for their current needs, rising to three quarters (75%) for those considering their future needs.<\/p>\n

\u2022 Only 74 per cent of those that currently receive download speeds of less than 10 Mbps think that they will benefit from the Universal Service Obligation (USO).<\/p>\n

Digital infrastructure:<\/strong>
\n\u2022 Full fibre and leased line connectivity take up among small businesses (14%) is much higher than the national average (estimated to be 2%).<\/p>\n

\u2022 Over half (52%) of small businesses plan to upgrade to full fibre connectivity when it becomes available in their area.<\/p>\n

\u2022 72 per cent of small businesses that currently receive download speeds of less than 10 Mbps plan to upgrade to full fibre connectivity when it becomes available in their area.<\/p>\n

Reliability and value for money:<\/strong>
\n\u2022 41 per cent of small businesses consider that their broadband is often unreliable.<\/p>\n

\u2022 Almost half (47%) of small businesses report that the speeds they receive are often lower than the speeds they were promised by their provider when they first signed up.<\/p>\n

\u2022 70 per cent of small businesses that currently receive download speeds of less than 10 Mbps report that this is lower than the speeds they were promised by their provider when they first signed up.<\/p>\n

\u2022 Almost half (49%) of small businesses that currently receive download speeds of less than 10 Mbps are paying over \u00a340 a month for their broadband, with a quarter (25%) paying over \u00a360 a month.<\/p>\n

Mobile:<\/strong>
\n\u2022 45 per cent of small businesses experience unreliable voice connectivity.<\/p>\n

\u2022 57 per cent of small businesses in rural areas experience unreliable voice connectivity.<\/p>\n

\u2022 Almost half (47%) of small businesses experience unreliable data connectivity.<\/p>\n

\u2022 59 per cent of small businesses in rural areas experience unreliable data connectivity.<\/p>\n

\u2022 Around a third (34%) of small businesses are willing to upgrade to 5G<\/a> when it becomes available in their area.<\/p>\n

Broadband and mobile:<\/strong>
\nImpact of poor broadband or mobile connectivity on small businesses\u2019 performance and growth:<\/p>\n

\u2022 Just under a third (32%) of small businesses have been prevented from contacting, or being contacted by, customers.<\/p>\n

\u2022 31 per cent of small businesses report that it is has been a barrier to the growth of their business. This figure rises to 49 per cent for small businesses that currently receive download speeds of less than 10 Mbps.<\/p>\n

\u2022 26 per cent of small firms say that they have lost business or sales as a result, rising to 36 per cent for those that currently receive download speeds of less than 10 Mbps.<\/p><\/blockquote>\n

One curious figure above is where the FSB notes that “full fibre and leased line connectivity take up among small businesses (14%) is much higher than the national average (estimated to be 2%)<\/em>.” By the looks of those figures they’re examining overall UK take-up, rather than take-up in areas where full fibre has actually been deployed (currently covers around 9%+ of UK premises and on Openreach<\/a> the take-up in such areas is around 23%).<\/p>\n

We also think it’s a bit odd to add leased lines into a comparison with the national average, which will include homes where people generally don’t have their own dedicated private circuits.<\/p>\n

Mike Cherry, FSB National Chairman, said:<\/strong><\/p>\n

“Unfortunately, an unreliable internet connection and poor phone signal are familiar challenges for small businesses across the UK.<\/p>\n

Trying to communicate with new and potential clients while you can\u2019t access your emails or your phone signal drops out is not only frustrating but, as we see in this new research, causes the loss of vital business. This is hugely problematic for small firms, hampering the productivity of the UK\u2019s army of small businesses and sole traders.<\/p>\n

These findings are particularly stark in rural areas where even more business owners are struggling to communicate with customers.<\/p>\n

Government is promising ambitious full fibre and gigabit capable broadband targets, which are very much welcomed, but now must translate words into action to help millions of small businesses. There\u2019s still a huge number of small firms not even getting download speeds of at least 10 Mbps \u2013 what is termed as a \u2018decent\u2019 connection. We need Government to fully commit to every premises receiving at least that by the end of 2021 by overcoming the infrastructure and market related issues that are preventing this.<\/p>\n

Targeting not spots and creating a shared rural network would go some way to help bridge that communication gap in the countryside, allowing mobile phone users to connect, regardless of what network they are on.<\/p>\n

Improving digital connectivity is an urgent priority to ensure our 5.8 million-strong small business community remains the engine of the UK economy.”<\/p><\/blockquote>\n

An Openreach<\/a> Spokesperson said:<\/strong><\/p>\n

“We agree with the FSB\u2019s call for faster action and this report highlights many of the issues that we\u2019ve been working with Government, Ofcom<\/a> and the wider industry to address.<\/p>\n

We\u2019re determined to build the future-proofed broadband that the UK needs and we\u2019re investing billions of pounds into our new full fibre network, reaching another business or home every 28 seconds.<\/p>\n

So far, 12.7 million businesses and households have upgraded to superfast broadband on the Openreach<\/a> network, but such services are available to almost 28 million UK premises, so we\u2019d encourage all companies to check whether better connections are available.”<\/p><\/blockquote>\n

We suspect that the “end of 2021<\/em>” target mentioned above could be tricky, particularly since the USO system may potentially receive a flood of requests when it first goes live (assuming people know how to correctly make such a request and to which providers). Ofcom<\/a> allows ISPs up to 12 months to act upon such a request (i.e. in some areas it will take roughly that amount of time to build a new network or possibly longer).<\/p>\n

One other crucial point on the 2021 date is that the USO is NOT an automatic upgrade, which means that people do need to request it before anything can even be considered for deployment. Obviously not everybody is going to request this at the same time and so there’s plenty of scope for deployments completing well after 2021 (e.g. if somebody requests in late 2021).<\/p>\n

We should also mention that the focus upon the USO could be confusing as that’s primarily intended for residential upgrades, while businesses may often have different options available vs domestic solutions (e.g. if the firm is at the larger end of the SME spectrum then it may opt for a dedicated leased line).<\/p>\n

Finally, the FSB makes a series of recommendations for the Government to improve their approach, although many of the items they list are already being implemented (e.g. more funding, full fibre for new builds). Meanwhile some of the others, such as the 2025 target for “full fibre<\/em>” or “gigabit-capable<\/em>” broadband, seem to have been watered down or quietly dropped by the Government to become “as soon as possible<\/em>” (here<\/a>).<\/p>\n

FSB Broadband and Mobile Recommendations<\/strong><\/span><\/p>\n

Broadband speed and type of connection<\/strong>
\n\u2022 Government, industry and regulators should work together to remove barriers to deployment and installation of full fibre, in order to deliver full fibre connectivity to all premises by 2025. If that is not possible in some of the most remote areas, those premises should be gigabit capable by 2025, which widens the scope of technologies available to achieve such a connection. (p22)<\/p>\n

\u2022 Government should provide more funding, or incentivise funding from telecoms providers, to provide full fibre or gigabit capable connections for the hardest to reach premises. (p23)<\/p>\n

\u2022 Government should review existing voucher schemes, and other stimulus schemes, to ensure that funding is targeted to those that need it the most. (p16)<\/p>\n

\u2022 Government, Ofcom, BT<\/a> and KCOM<\/a> should run public awareness campaigns about the Universal Service Obligation (USO) before it launches in March 2020. (p19)<\/p>\n

\u2022 Ofcom must hold BT and KCOM<\/a> fully to account for any unnecessary delays in the implementation of USO connections. (p19)<\/p>\n

\u2022 FSB is calling for a public commitment that, as a minimum, no premise should receive download speeds of less than 10 Mbps by the end of December 2021, irrespective of whether they have proactively asked to be connected under the USO. (p20)<\/p>\n

\u2022 FSB recommends that, where possible to implement within the USO installation timeframes, BT should use full fibre or a gigabit capable connection to connect properties eligible for a USO connection. (p20)<\/p>\n

Broadband reliability, market interaction and cost<\/strong>
\n\u2022 Government should make it mandatory for new build properties to have full fibre connectivity, or be gigabit capable in places where full fibre will not be a feasible solution. (p25)<\/p>\n

\u2022 Business and industrial park owners should actively work with providers of full fibre to connect their premises. (p25)<\/p>\n

\u2022 Ofcom should make the Voluntary Codes of Practice compulsory, as they outline best practice, and providers should not be operating if they do not adhere to best practice. Any future codes of practice should be made compulsory, to create a level playing field for suppliers, and to protect all customers. (p26)<\/p>\n

\u2022 Ofcom should improve the advice it provides online, and find new ways to reach customers to provide them with the information required to make informed decisions. If Ofcom cannot find a useful way of doing so, they should instead focus on ensuring that the market suppliers provide the relevant information. (p28)<\/p>\n

\u2022 Ofcom should mandate broadband providers that cannot supply a service in an area to be transparent about the possibility that a separate provider can supply a connection instead. (p29)<\/p>\n

\u2022 For the USO, a fairer affordable safeguard cap should be set at \u00a335 a month, to protect USO customers. (p31)<\/p>\n

Mobile connectivity<\/strong>
\n\u2022 Ofcom should ensure that the 3.6-3.8 GHz spectrum band (for 5G<\/a>) auction takes place as scheduled, without delays. (p34)<\/p>\n

\u2022 FSB supports a shared rural network. If necessary, government and Ofcom may need guarantees from the mobile network operators in exchange for removing coverage obligations and subsidising some of the extra costs involved. (p34)<\/p>\n

\u2022 Ofcom should also ensure that the 700 MHz spectrum band (for 4G<\/a>) auction takes place as scheduled, without delays. (p34)<\/p>\n

\u2022 Funds raised from both of the 2020 spectrum band auctions should be ring-fenced to be spent on infrastructure improvements. (p34)<\/p>\n

Impact on small businesses<\/strong>
\n\u2022 Ofcom should extend the existing compensation schemes so that they also apply to business contracts. (p37)<\/p>\n

Connectivity in the devolved nations<\/strong>
\n\u2022 The Scottish Government<\/a> should publish their revised timetable for the delivery of the R100 programme as soon as possible. (p39)<\/p>\n

\u2022 The Scottish Government<\/a> and UK Government should develop a memorandum of understanding regarding the development and deployment of digital infrastructure interventions. (p39)<\/p>\n

\u2022 The UK Government should instruct Ofcom to develop a plan to close the mobile coverage gap between UK nations within the next four years, and future market interventions should be designed to benefit all parts of the UK. (p39)<\/p>\n

\u2022 The National Infrastructure Commission for Wales should continue to address market failure trends in Wales ahead of rollout for technologies such as broadband and 5G<\/a> mobile coverage in its 30 year infrastructure plan. (p40)<\/p>\n

\u2022 The Welsh Government<\/a> should fund market interventions similar in scale and ambition to Superfast Cymru to ensure Wales is at the forefront of digital connectivity. (p40)<\/p>\n

\u2022 UK and Welsh Governments should continue to work with mobile operators to expand the network coverage for mobile internet, especially with the onset of 5G. (p40)<\/p>\n

\u2022 The Welsh Government<\/a> should work with Ofcom to ensure that regulation of mobile networks includes greater investment in Wales\u2019s harder to reach areas. (p40)<\/p>\n

\u2022 The Northern Ireland Executive must ensure that support for new infrastructure available through Project Stratum is unrestricted by postcode, to benefit all those who need it. (p41)<\/p>\n

\u2022 The Department for the Economy in Northern Ireland should ensure unserved premises are able to register their lack of connectivity through a touchpoint for business owners and consumers. This should be monitored closely until a sufficient threshold of service is met. (p41)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

A new report from the Federation of Small Businesses (FSB) has demanded action from the UK Government after they surveyed 1,136 small businesses. The results found that 30% of such firms still receive ISP download speeds of less than 10Mbps (rising to 39% in rural areas) and nearly half struggle with “unreliable mobile signals.“<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[471,38,34,537],"class_list":["post-19710","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-bduk","tag-politics","tag-statistics","tag-uso"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nSmall UK Businesses Demand Action to Improve Broadband - ISPreview UK<\/title>\n<meta name=\"description\" content=\"A new report from the Federation of Small Businesses (FSB) has demanded action from the UK Government after they surveyed 1,136 small businesses. 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